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How To Settle An Estate: Pay Final Bills, Dues, Taxes And Expenses

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In order to settle the estate, all outstanding bills and dues that the person who died owed must be paid.

Types Of Bills And Dues

Common types of bills and dues include:

Credit cards

Medical bills

Student loans

Car loans

Mortgages

Alimony

Child support

Payday loans

Administrative Expenses and Final Bills

Bills and dues can be divided into two categories: administrative expenses and final bills.

Administrative expenses are any ongoing bills that must be paid, such as rent, mortgages, insurance, and utilities. These bills can (and should) be paid even if the probate process is not complete. These bills should be paid by the beneficiaries named in the will. Though laws vary from state to state, for the most part you'll want to transfer these ongoing bills and accounts into your name or the name of the executor, who can then pay the bills.

Final bills are bills for which the full amount can only be paid once the probate process is complete, such as taxes, credit card bills, and medical bills. These bills should only be paid by the executor using money from the estate once probate has concluded.

If you cannot afford to pay some of the administrative expenses without money from the estate, you should be in touch with the companies that are owed and explain your situation. In some cases, you may be granted a deferral on those bills.